close

Forex Trading

Forex Trading

Should beginners trade options in Singapore?

In Singapore, trading options is a popular investment choice with the fast-growing financial market. However, most people find it difficult to enter this field as they lack knowledge in business and investing. It is a good idea for beginners not to trade options.

In an ideal world, everyone is knowledgeable in all areas of life and can make the right decision when required. In reality, however, most individuals are ignorant about investments and rely heavily on their advisers, which works well when you have a multi-million dollar portfolio that requires constant attention from financial industry experts or when you commit your wealth into passive income stocks that require tinkering less frequently.

But what happens when you have a small amount of money in your bank account and want to invest in something that will generate income? Like many other beginners, you may consider trading options as a way of generating income.

What is an option?

An option is a contract that allows the buyer to purchase or sell an underlying asset at a specific price during or by a certain date. For instance, if the stock price of Company A was $1.50 mid-January, you can buy one call option with expiry on 31st January at prices ranging from $1.72 to $2.00 per share, which means you are guaranteed to receive between $1.72 and $2.00 when selling your shares before expiration day even though the actual market price may be lower than this range, but not higher than it.

It is worthwhile noting that the greater the period before the expiry date, the more expensive it is. Unfortunately for beginners, this means your financial losses may become larger as time passes.

Trading options in Singapore

Regarding important factors to note when trading options, the high risks involved should be a significant concern. Like all contracts, options come with expiration dates which mean they can expire any minute without notice, and you will lose all your money if the stock price does not move at least once within that time frame.

In addition, stocks do not always follow market trends and investors need to pay attention to the underlying assets; otherwise, they may end up losing their investment entirely if an unexpected event occurs suddenly, such as company liquidation, and this is something you cannot predict unless you are a professional trader yourself.

It is not a good idea for beginners to trade options as they lack the knowledge and experience required to understand option contracts and read between the lines of market trends.

Other ways for beginners to invest in the stock market

Although beginners can turn their loss into profit by trading Singapore stock options, there are still other ways to make money from stock markets without relying on highly volatile investments such as options. In addition, it is also advisable for them to invest in passive income stocks, which do not demand much work from traders but usually provide stable returns daily or monthly.

Beginner traders must have a Plan B

It should be noted that this article was written with beginners in mind, and those who have never traded before, rather than experienced investors who know what they’re doing. It will be beneficial for you to know about creating a ‘Plan B’ in the unfortunate event that your investment does not go as planned.

You can rest easy knowing you have a plan B to fall back on, risking less money while still leaving you room for growth should your potentially successful trade fail to pan out. If trading is your passion and risk-taking is something you enjoy, it’s worth considering investing in options but make sure you’ve done your research first.

Bottom Line

Beginner traders interested in options trading are advised to use an experienced and reputable online broker from Saxo Bank and trade on a demo account before investing real money.

read more
Forex Trading

How to Ensure You Pay the Right Amount Of Tax

Unfortunately, as the old saying goes, the only two certainties in life are death and taxes. Indeed, if you are looking for assistance to make sure you pay the right amount of tax you should think about contacting a specialist in tax as soon as possible. You should also be aware that an expert on tax advice can provide you with enough information so that you can make sure you understand how much tax you should be paying and if you are making the correct type of income tax payments per year. As a result, if you are looking for a company providing tax services in Rotherham, you should think about checking a search engine as you will be able to identify several companies that you can talk to.

Another way that you can ensure you pay the right amount of tax is to ensure your accounts are correct at all times. In addition, you should be aware that you may have to pay a particular amount of business tax, if you operate a commercial entity. As a result, if you are looking for advice about your personal or business tax situation, you should think about contacting an expert as soon as possible as they will be able to provide you with the best advice possible for your situation. If you want to make sure you pay the right amount of tax you should think about contacting a specialist in tax as soon as possible.

  • Make sure you pay the right amount of tax
  • Contact an expert in tax
  • Understand how much tax you should be paying

Therefore, in conclusion, if you want to make sure you are paying the correct amount of personal or business income tax, you should make sure you talk to a tax specialist in your local area as soon as possible.

 

 

 

read more
Forex Trading

Stock Market APIs: How to Get Real-Time Data Into Your Applications

If you’re a developer, then you know that the world of finance is a big deal. And if you’re looking to get into the world of finance, you need to know about stock data API. These APIs allow you to get real-time data from the stock market and incorporate it into your applications. This blog post will discuss stock market APIs and how to use them in your applications.

What is stock market APIs?

Stock market APIs allow you to access real-time data from the stock market. This data can be used to power your financial applications and better understand how the stock market works. Various stock market APIs are available, each with its own unique set of features.

How to use stock market APIs in your applications

Now that you know what stock market APIs are let’s look at how to use them in your applications. The first step is to find an API that meets your needs. Various APIs are available, each with its own unique set of features. Once you’ve found an API, you need to register for an account and get your API key. The next step is to start coding! Most APIs come with libraries for various programming languages, so getting started is easy. Include the library in your project and start making calls to the API.

The next step is to test your application. Ensure that you’re sending the correct parameters and getting the expected results. Once you’ve verified that everything is working correctly, you can deploy your application and start using it in production.

Finally, don’t forget to keep track of your usage. Most APIs limit the number of requests you can make per day. Make sure that you’re not going over your limit, or you may end up getting suspended.

Several famous stock market APIs are available, each with its own unique set of features. Here are some of the most popular:

Google Finance API – The Google Finance API is another popular option. It allows you to get historical and real-time data from over 100 different exchanges.

Bloomberg API – The Bloomberg API is the most comprehensive stock market API available. It offers access to real-time data, historical data, and news feeds from over 300 different exchanges.

Now that you know all about stock market APIs start using them in your applications! They are a great way to get real-time data into your applications and better understand the stock market. Happy coding!

read more
Forex Trading

Choosing the best influence for your trading business

If you are cheerful in your business, it will have a high potential. That’s because you can secure your investment with impressive money management. Then you can prepare the best plans for running your business. And the most important of them all, you will accept the fundamentals of your business. Plus, you will implement them in the most efficient ways possible. For the currency trading business, a trader also requires the best influence. Since it is an online-based profession, a trader can build his trading setup at any place. So, you can be relaxed from any disturbance while running the business. Unfortunately, there will be no one to cheer you for better performance. A trader should create the best environment for his business by himself. Also, he should select the best peripherals for it.

If a trader finds the best influence for his business, it will benefit him in every procedure. So, he will secure the investment with better money management. And he will provide a better performance in market analysis. Ultimately, a trader will be ready to find good profit potentials from his business. Plus, he will not lose more often like most other rookie traders.

Brokers are a large part of currency trading

One of the most crucial parts of a soothing trade environment is the broker. If your broker is not supportive of your trading style, it will harm your performance. The rookie might think that brokers who support big lots and considerable leverages are appropriate. Unfortunately, the Forex is not suitable for high-risk setups. If you invest too much money or select immense leverage ratios like 1:100, it will increase the potential loss of your business. And a lack of analytical skills will increase the chances of losing money. In that case, a trader cannot dream of a long-term career. So, choosing the best brokers for safe trading is crucial for everyone. It’s true, CFD trading in UK is very popular but a very few traders knows the importance of premium broker. So, consider this issue before you start your career.

For help, there are some regulatory boards available that rank the brokers. They have commodity brokers and currency brokers available to the traders. If you cannot select the best one for your business, take help from those boards. Then open your trading account with the lowest risk setups.

Do not neglect the trading frequency

The trading frequency is another factor of positive influence on a rookie trader. If someone is placing orders frequently in a day, he might not provide efficient market analysis. As a result, it can reduce the efficiency of a trader. And it increases the risk exposure of a trader. Since short-term trades can manage low pips, a rookie trader changes the investment policy to increase profit potential. He raises the size of the lots and leverage ratios. Unfortunately, rookie traders do not have sufficient analytical skills. So, they cannot position their executions efficiently. And they fail to set the best exit points for the trades. As a result, those traders lose money from their purchases. Due to high-risk setups, their potentials losses linger high as well.

For your trading business, you will need a positive influence. And high potential loss is not influential to a trader, especially when he is a rookie. That is why a trader should reduce the trading frequency. If possible, everyone should use long-term systems like day trading or swing trading. Even if someone selects scalp trading, the number of trades per day should be moderate. Thus, the trading business will be safe and secured.

Your best influencer is yourself

Even if a trader learns from different trading tutorials, he will be the only supervisor of his business. So, everything will run by his ideas. His plans will prepare the trade setups. And he will find the position sizes all by himself. And the most important of all, that trader himself will be the best influence on his trading business. That is why a trader should create self-confidence. It might be arduous when a rookie loses too frequently. Still, a trader can try improving his ideology and strategy to improvise efficiency. Thus, the increased business potential will help to build up self-confidence.

read more
Forex Trading

CFD trading and who is authorized to trade

Introduction

Although many have been practicing CFD trading in singapore, it is only a few people who understand what CFD trading is all about. CFD is just an acronym that standard for contracts for difference. It is simply a difference that allows different types of traders to either enter or exit the market.

Experienced traders utilize CFD in the prediction of price movements especially of assets that are tradable. It is can also be termed as a contract between the trader and a broker. CFD has many benefits but you can only utilize them when you understand how the trade works

CFD and who can trade

There are no restrictions when it comes to CFD trading. Everyone and anyone can trade in CFDs. If you do not have an idea of how you can go about the trade, you should seek help from an experienced trader or even a broker. This type of trade is always done online. Therefore, you have the freedom to choose the amount, asset, and type of trade that will be suitable for you. You have to choose wisely or else, you will lose a lot.

read more
Forex Trading

Why You Should Start Your Forex Trading Journey with a Demo Account

Many trading platforms offer two categories of trading accounts: the live account and the demo account. A demo account allows you practise trading without risking your capital. Novice traders prefer to trade using the demo account before moving on to the live one.

Demo accounts are therefore important as they allow you to practice your skills without risking your money. Also, a demo account on https://www.equiti.com/accounts/compare-our-accounts/ allows you to test various strategies.

Benefits of Using a Demo Account

Beginners enjoy a plethora of benefits from using a demo account. Some of these benefits include the following:

1.     It Allows You to Practise Some Basic Trading Skills

Trading requires some skill if one is to make profits. A demo account gives you the chance to practice the essential skills you will need to trade successfully. This way, you can avoid typical trading mistakes novice traders make.

2.     Decide the Trading Assets That Suit You Best

This calls for some serious research and dedication. You need to examine every instrument concerning the following:

  • How volatile the instrument is
  • The historical value of the instrument

If you are invested in trading and want to make a success of it, then you must take time to study your instruments of choice. This way, you are likely to find a strategy that works for you in the long run.

3.     Learn Different Trading Strategies

A demo account is an ingenious way to learn and practise several trading strategies. Trying out different strategies helps you to figure out which one works best for you. Even competent traders turn to the demo account occasionally to practise a few strategies before hitting the market in earnest.

4.     Learn the Best Time to Open a Position

With time and experience, you learn that prices can move in a matter of hours or days. Practising with a demo account helps you learn the best times to open your positions. Naturally, this comes in handy when you graduate to the live account as you will avoid floundering.

5.     Disadvantages of Using the Demo Account

Many experienced investors say that the demo account comes with one specific disadvantage – it does not give the trader the full experience of trading with real money. This includes the high and the lows, as well as the excitement and anxiety that accompany trading.

For instance, you cannot gauge your emotional state using a demo account. You know there is no risk of loss as you are not using real money.

All in all, the significance of a demo account is not to be underestimated. It is a great space for rookie traders to learn skills and try different strategies out. However, how you approach it matters a lot. The best way is to treat it as if it were a real account.

This means that you will not play around with large deposits because you know there is no risk involved. You will not get the feel of the live account by doing this. You want to train yourself to refrain from risking too much.

A demo account also trains you to create a plan that you can stick to. You can track your progress and see if you meet your trading objectives. If it proves to be successful, you can move it to the live account.

Conclusion

It is best to open your demo account with the trading platform you have chosen. MetaTrader offers great services with the demo accounts and you can seamlessly move with your broker to the live one.

Also, once you graduate to your real account, you will not have to learn unfamiliar software from the start. You will be able to carry on trading without interruptions.

Ultimately, a demo account helps you to put in some practice to prepare for your live account. It helps you to figure out which strategies are the best for you and also get a feel of trading before you dive in.

read more
Forex Trading

Understand the Importance of Stop Loss Order and How to Implement in Forex Trading

If you want to enter the FX market then look for a regulated and reliable online FX and CFD broker. To Trade Forex Onlineyou can check ADSS.com. You can get a better idea of the stop-loss order mechanism in the FX market. Stop loss is designed to reduce a trader’s loss on a position. Many traders connect stop-loss with a long position, but you can even apply it in a short position.

Why use stop-loss order?

Emotions get eliminated

Stop Loss management is a tricky concept in FX trading. It effectively closes the trading positions, when the losses reach a predetermined level. They are an efficient way to halt trades during a severe dip, where profitability return is impossible. Some investors find it emotionally hard to accept that they made a wrong decision, but withdrawing your vanity can reduce the losses.

Loss gets reduced

There are no hard rules when you place a stop order but traders follow some globally accepted procedures. For example, day traders can set stops outside the traded currency pair’s daily price range. In this manner, if the movement goes against your prediction, the stop loss will protect the position. Swing traders can set stop loss further or 2 to 3 times larger than the normal daily trading range.

Risk management

FX futures are unpredictable, even with s solid setup or information pointing to a strong trend every position entered is a risk. Even if the traders win 75% of their trading with common currency pairs, their money management skills are poor. Incorrect money management leads to disastrous outcome.

To avoid this, you must learn how to estimate stop loss. Beginners can choose the Forex Demo Account available on the ADSS trading platform. It will help them to handle their emotional trading. The fear of the unknown gets removed and unwanted risks get managed in a given position. It offers the trader to stay balanced during pressure for long-term success in the FX market.

List of stop-loss strategies

Stop & reverse

It includes a stop at a specific loss point along with a simultaneous enter into a new trade including a stop in opposite direction. It is a strategy that needs market expertise. All the brokers don’t accept this trading structure in one order. In the majority of cases, after you execute the first stop there is a need to implement the new order, which reverses the original order with a new stop in a new direction.

Harvesting stops & multiple stops

A few FX traders assume that if a stop loss is set, the market-makers will maneuver the market and harvest your stop to claim the profits. So, they put multiple stops to protect from what they assume to be unnecessary losses.

Multiple stops can help in sudden price movements in opposite direction towards your first or second stop and ultimately reverse. It means some trade portion still remains active.

Trailing stops

If your position is tilting towards profiting, a trailing stop will move upwards with the increasing market price. The loss percentage you set remains the same as the market moves in your favor. If it suddenly moves against, the trailing stop that rose as your profit will protect the decline of the recent increases.

read more
Forex Trading

Metatrader 4 – A Comprehensive Review

Whether you are a CFD, forex, or futures trader, having a reliable trading platform is an essential aspect of your trading. Metatrader4 is one of the most popular trading platforms today.

When you download metatrader4, you can perform advanced trade operations, analyze financial markets, use a trading robot, and access deals from other advanced traders.

Here is everything you need to know about trading on metratrader4.

The system

Metatrader4 supports up to 3 trade execution modes. These are 2 market, 4 pending, 2 stop orders, instant execution, and trailing stop function.

With these functions, you can enjoy quick, one-click trading, especially when you need to execute direct trading orders from the chart. The metatrader4 system also comes with an inbuilt chat feature. This allows you to order trade entry and exit points promptly.

Technical analysis on Metatrader4 

MetaTrader 4 platform offers a wide opportunity for analytical analysis to its users. Every trade symbol is on a 9 time-frame display, making it possible for traders to get price changes details in real-time. The platform also has 24 graphic objects and 30 in-built technical indicators for a more comprehensive price dynamics analysis.

Because of the wide capability of the technical analysis feature in mt4, traders can combine different tools to identify trends, their strategy and determining trading points. By analyzing the market movements accurately, a trader is better placed to catch the best trade times.

Web trading on the metatrader4 platform

Mt4 is a trading platform that is compatible with most web browsers. It can be installed on any browser or operating system to start trading in no time. You only need to have a reliable internet connection.

On the metatrader4 web version, traders can also analyze currency quotes as they execute different trading operations. Trading on the web-based platform is also safe since data is encrypted before transmission.

With web trading, you also enjoy:

  • One-Click Trading
  • 9 time-frames, from a minute to a month
  • Reliable data protection
  • Compatibility with Windows, MacOS, Linux
  • Directly trading via a browser
  • Real-time quotes in Market Watch
  • Trading operations history
  • All trading orders types and MetaTrader 4 execution modes
  • 30 indicators and 24 graphical objects for technical analysis

Security and Convenience 

The MetaTrader4 trading platform is created with the highest security standards. The data exchange between the user terminals and platform servers is always encrypted for safety. The platform also supports RSA digital signature technology. With these features, users can rest assured of the protections of their trading accounts.

The platform is also equipped with a set of advanced trading and analytical features. This is offered on the platform’s user-friendly interface for an easier understanding of the operation functions. Setting up an account only takes a few minutes, after which you can start trading on the platform. There is a detailed manual for new users.

Metatrader4 mobile trading option 

You can trade forex or any other form of commodity on the metatrader4 platform from your android, iPad/iPhone devices. With this compatibility, you can trade online wherever you go.

The metatradr4 mobile application is your daily trading assistant and work tool. With the app on your phone, you can trade in different markets and even access your trade analysis and service round the clock.

With mobile trading, you enjoy:

  • 9 time-frames, including M1, M5, M15, M30, H1, H4, D1, W1, and MN
  • access anywhere and anytime
  • complete control over the trading account
  • all order types and MetaTrader 4 execution modes
  • 24 analytical objects
  • Financial market news
  • 3 chart types, including Bars, Japanese Candlesticks, and a broken line
  • 30 technical indicators
  • free chat for communicating with other traders

Metatrader4 and Trading robots

Using metatrader4 as your ideal trading platform allows you to use automated trading bots for your trades. These robots can analyze trade quotes and execute favorable trading options for your trading style. This relieves you from the routine of trading and analyzing the market every day.

read more
Forex Trading

The Basics of Trading Options for Beginners

If you are looking for ways to diversify your portfolio, or of making a profit in the market, trading options is a good alternative to explore. This is because options can offer a less risky option when compared to equities, have the potential to generate higher returns than other investment alternatives, and they generally provide better cost efficiency to investors.

However, before you reap the benefits of options trading online in Singapore, there are a few basics that you need to learn as far as trading these derivatives is concerned. Here is what you should know about how to trade options and how you can make money doing it.

Options are derivatives, which means that they feature an underlying asset. This asset can be a commodity, currency, or a stock. And so options trading involves trading in the rights to buy or sell the underlying asset.

Call Options

With a call option, the holder or the buyer of the asset acquires the right to purchase the asset at a given price before time runs out. However, unlike when trading with futures, this only confers the right to buy, but it is not an obligation.

Therefore, if you are a buyer of a call option, you are essentially implying that you think that the price of the underlying asset will eventually be higher than the price that it has been agreed on. You are also betting that the asset will attain a higher price before the expiry of the option.

As a result, you will be buying the option at the given price, which is called a strike price, hoping that you will sell it once the asset gets to a higher price. Therefore, if this happens, you will be able to resell the underlying asset at a profit, since you had initially bought it at a lower price.

To be able to make this bet, you will need to pay the seller a fee. This fee, usually referred to as a premium, is also the maximum amount that you stand to lose on the deal.

As for the seller of a call option, they are generally of the view that the price won’t increase beyond the strike price, at least not before the expiry of the option. As a result, to the seller, the premium that they get at the outset is generally the profit that they are hoping to make.

Put options

On the other hand, buying a put option simply means that you think that the price of the underlying asset will fall below the strike price within a given date. Therefore, as a buyer of the option, you gain the right to sell it at the set price, provided you do so within a certain period. Therefore, if you are looking to make a profit, you will buy put options of underlying assets whose price, you believe, will fall before a given date. Essentially, you will be buying the underlying asset at the lower price.

For the put seller, they will make a trade when they believe that the price won’t fall below the set price. And as soon as they sell, they immediately receive an upfront amount that is called a premium. As a result, if the price ends up falling below the set price, then they will be under an obligation to buy the underlying asset at the set price.

Therefore, this means that as a trader, you basically have four trading options. You can choose to be a buyer of either put options or call options. You can also choose to be a seller of either put options or call options. And while there may be a few more details and processes that you have to familiarize yourself with, these are the basics of trading options. In short, options trades essentially involve betting on whether the market price of an underlying asset will increase or decrease within a certain period.

read more
Forex Trading

Do You Know How Trade with Algo?

An algo (short for the algorithm) is a set of rules orchestrated to complete a specific task.

In financial markets, algo trading uses a computer program that follows instructions given by the trader. It is also known as automated trading and black-box trading.

To give you an idea of algo trading, here’s an example:

Suppose a trader buys 100 units of EUR/USD when its 10-day moving average passes above the 200-day moving average. (A moving average is a representation of past data points on the trading charts).

Using this instruction, a computer program will automatically place buy and sell orders. A trader doesn’t need to monitor trading charts or place orders because an algo will do all of this.

Let’s further break down what trading with algo means in forex, and why is it important?

Forex trading with Algo

Thirty years ago, forex trading was a different story. You either need to have millions of dollars or part of big financial institutions for trading.

But now, much of the forex trading has been revolutionized by an algo. It has reduced the hours needed to conduct transactions and also helped in processing orders.

Just imagine going through all the trading cfds process manually! (it would be a disaster).

Next time if someone asks you how forex trading is the most liquid financial market, you can say it’s all because of an algo.

In forex, algo trading is associated with speculative trading. Using an algo, a trader allows himself/herself to profit from a slight price deviation.

Algo trading allows forex traders to set a specific exchange rate for buying and selling currency. This is due to forex options (an option is a financial instrument based on values of underlying assets).

Forex strategies that use algo trading:

Algo trading is used in the following forex strategies:

  • Trend following
  • News trading
  • Arbitrage
  • High-frequency
  • Market sentiment

How to create a trading algo for yourself?

Creating an algo for trading requires coding. Having programming skills at your disposal can help you fine-tune your trading algo. But if you don’t’ have any coding experience, you can use a service that provides an algo.

The developed code is plugged into a trading platform for trading purposes.

Although algo decreases human efforts, you need to take a few steps before you can begin real-trading.

  • First, you need to select a time-frame and trading frequency. This is essential if you are not a full-time trader.
  • As we mentioned strategies for algo trading, you must develop a trading strategy. If an algo isn’t working for one approach, you may want to consider altering your algo.
  • The most important step is testing your algo. After having your algo code, don’t jump into conclusions. Practice your trading algo with a demo account. You should run an algo with past data of currency pairs. This will show you how currency pairs are performing with your algo.

Conclusion:

Algo trading helps in lessening human activities. This leaves emotions (most important trading factor) out of practice.

If you mess with an algo, you won’t get any benefits from it.

read more
1 2
Page 1 of 2